Exclude any existing inventory.

Exclude any existing inventory.

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According to information found on the production analysis page of the Inquirer, Chester sold 1129 units of Coat in the current year. Assuming that Coat maintains a constant market share, all the units of Coat are sold in the Nano market segment and the growth rate remains constant, how many years will it be before Coat will not be able to meet future demand unless the company adds production capacity? Exclude any existing inventory.
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3 year(s)

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2 year(s)

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4 year(s)

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1 year(s)

Which description best fits Andrews? For clarity:

• A differentiator competes through good designs, high awareness, and easy accessibility.
• A cost leader competes on price by reducing costs and passing the savings to customers.
• A broad player competes in all parts of the market.
• A niche player competes in selected parts of the market.

Which of these four statements best describes your company’s current strategy?
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Andrews is a niche differentiator

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Andrews is a niche cost leader

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Andrews is a broad cost leader

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Andrews is a broad differentiator

Demand is created through meeting customer buying criteria, credit terms, awareness (promotion) and accessibility (distribution). According to the Thrift segment’s customers, which of these products was the most competitive at the end of last year?
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Dot

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Dune

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Agape

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Buddy

Bat is a product of the Baldwin company which is primarily in the Nano segment, but is also sold in another segment. Baldwin starts to create their sales forecast by assuming all policies (R&D, Marketing, and Production) for all competitors are equal this year over last. For this question assume that all 700 of units of Bat are sold in the Nano segment. If the competitive environment remains unchanged what will be the Bat product’s demand next year (in 000’s)?
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749

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700

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798

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1596

Investing $2,000,000 in TQM’s Channel Support Systems initiative will at a minimum increase demand for your products 1.7% in this and in all future rounds. (Refer to the TQM Initiative worksheet in the CompXM.xls Decisions menu.) Looking at the Round 0 Inquirer for Andrews, last year’s sales were $163,608,638. Assuming similar sales next year, the 1.7% increase in demand will provide $2,781,347 of additional revenue. With the overall contribution margin of 34.2%, after direct costs this revenue will add $951,221 to the bottom line. For simplicity, assume that the demand increase and margins will remain at last year’s levels. How long will it take to achieve payback on the initial $2,000,000 TQM investment, rounded to the nearest month?
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